Individual Assignment

This is an Individual Assignment and MUST NOT be done as Group Work.

State all Assumptions and show all your working out steps . You may round your
figures to 2 d.p.

Due date : November 21 at 11:55 pm. No late assignment will be accepted.

Question 1-20%

Summarize your assessment and respond in 4 pages maximum.

Frito-Lay has 38 plants and 48,000 employees in North America. Operations is the
focus of the firm from designing products to meeting changing customer preferences
to adjusting to rising commodity cost to subtle issues involving flavors and
preservatives. OM is under constant cost, time, quality, and market pressure.

From your knowledge of production processes and from the case and the video,
identify how each of the 10 decisions of OM is applied at Frito-Lay
2. How would you determine the productivity of the production process at Frito-Lay
3. How are the 10 decisions of OM different when applied by the operations manager
of a production process such as Frito-Lay versus a service organization such as Hard
Rock Cafe.

Question 2 -20%
The owner of a car parts distribution company( Parts to Parts Auto) determined from
historical records that demand for brake pads for their parts department averages
2,500 units annually. Based on the manager’s knowledge of operations management,
he determined that the demand during lead-time follows a normal distribution with a
mean of 25 brake pads. The inventory distribution has a standard deviation of 3brake
pads with a stock out risk limited to 6 %.
Calculate:
a. Appropriate value of Z?
b. Safety stock level?
c. Reorder Point?
d. Expected number of brake pads if he wants to maintain a service level of
80%.

Question 3 -20%
A supermarket chain in Jamaica assessed is inventory data across its various outlets
and determined that it is using both the Continuous Review and Periodic Review
systems. It’s that time of the year when decision are made regarding how many items
to order and when should this be done. The following data on one of the
independently demanded items is shown below:
 Cost of the item = $85
 Weekly demand = 90 units
  Ordering cost = $55 per order
 Holding cost = 5% of item cost
 At the time of collecting the data, there were 65 units in stock and 120 units in
pipeline


 Weekly standard deviation = 9 units
 Average stock out for the item = 2%
 Lead-time for item = 2 weeks
 Number of operating weeks per year = 50 weeks
a. What would be the order quantity (rounded to the nearest integer) under the
Continuous Review policy?
b. What would be the average inventory cost under the Continuous Review policy?
c. What is the reorder point under the Continuous Review system?
d. How many units of this item should be ordered under the Periodic Review
System?
e. Compare the total costs, inclusive of safety stock, of both the Continuous Review
and the Periodic Review systems and state how much (in percentage) is one
greater than the other.

Question 4 -20%
The Operations Manager at the famous Dunns Falls, Joe Barrow has gathered data
of the number of visitors to the falls for the last 3 years for each of the 4 seasons
(winter, spring, summer, fall) as shown below.

a) Compute the seasonal index for each season

b) It expected that a total of 800,000 persons will visit the Falls in the year 2000.
How many visitors can Joe expect in the summer of the year 2000

Question 5- 20%

Given the forecast demand and actual demand for BMW cars below
 Year Forecast Actual
Demand Demand
1 78 71
2 75 80
3 83 101
4 84 84
5 88 60
6 85 73

a) Compute the tracking signal for each period

b) Draw the tracking signal within +/- 2 MAD

Question 6 -10%

As a customer service agent for Jamaica Public Service Company Ltd. your job
involves analyzing and resolving customer complaints. Part of your analysis
involves a comparison between the established standards of the company and the
actual service offers. As part of this analysis, you collected data on the number of
customers who have file some form of complaint through the company’s customer
complaints system ( using an App) over the last 12 months in 2019. From a batch of
500 customers each month, you found the data given in the table below . The records
also show that there is an established average 2.6% complaints from the number of
customers served by the company.
Month Number of Complaints
Jan 12
February 10
March 7
April 8
May 15
June 14
July 8
August 5
September 12
October 10
November 6
December 15

a) Calculate the lower control limit (LCL) and the upper control limit (UCL) for the
appropriate control chart
b) Construct the control chart for which the LCL and UCL were calculated and
comment on the result regarding the service offered by JPS to its customers.

Part 2 - 10%
The specifications for a part of a car engine requires a thickness of 2.50 cm ± 0.020
cm. The standard deviation of the process is estimated to be 0.004 cm. At present,
the process operating at an average thickness of 2.50 cm.
a) Calculate the upper and lower specification limits for this product
b) Calculate the Cp for and the Cpk of this process
c) State the approximate percent of this product that will meet specifications
d) Comment on the prospect of this process meeting the technical definition of
Six Sigma.